Is The Trade Desk, Inc. overvalued or undervalued?

As of 17 October 2025, The Trade Desk, Inc. has moved from a fair to an expensive valuation grade. The company is considered overvalued based on its high valuation ratios, including a P/E ratio of 85, an EV to EBITDA of 61.64, and a Price to Book Value of 12.93. In comparison, its peer, which has a P/E of 60.98 and an EV to EBITDA of 41.76, suggests that The Trade Desk is trading at a significant premium relative to its industry peers.
The company's recent performance has been disappointing, with a year-to-date return of -57.47% compared to a positive 13.30% return for the S&P 500, indicating a stark underperformance. This trend continues over the longer term, with a 5-year return of -17.39% versus the S&P 500's 91.29%, reinforcing the notion that The Trade Desk is currently overvalued in the market.